The KPI Institute launched a series of free infographics called KPI of the Month to offer insights into the practical application of KPIs. Each infographic focuses on a particular key performance indicator (KPI) that provides explanations of terminology and addresses key challenges related to its use. The monthly infographics include definition, calculation, balanced scorecard focus, data profile, targets, and practical recommendations. 

Throughout the year, we have diligently tracked performance and growth, culminating in this comprehensive review of Quarterly KPI highlights. As we dive into the 2024 last quarter’s key metrics— % Expansion revenue, # Focus time, and $ Earnings before interest, taxes, depreciation, and amortization (EBITDA)—these insights may offer valuable guidance for shaping strategies, improving productivity, and driving financial success in the year ahead. 

As you set your sights on 2025, these KPIs offer actionable insights for optimizing performance across various business areas. Whether refining customer engagement strategies, enhancing operational efficiency, or boosting financial outcomes, understanding and leveraging these metrics can help start the new year on the right foot and position your organization for continued success. So, let’s take a closer look at each of these metrics.

KPI of October: % Expansion revenue – This indicator measures revenue from upselling and cross-selling to current customers, relative to total revenue for the reporting period. Its purpose is to evaluate the effectiveness of strategies for increasing customer spending. For more details about this indicator, download the free poster via TKI Marketplace. 

KPI of November: # Focus time – This indicator measures the duration employees can maintain focus on critical work tasks without distractions to assess and optimize workflows, ensuring they foster greater efficiency and higher-quality results. How can organizations help employees improve # Focus time? One of the best practices is to encourage designated “no meeting” periods to allow for focused, uninterrupted work. Access more insights into this indicator by getting a free copy of the poster via TKI Marketplace.

KPI of December: $ Earnings before interest, taxes, depreciation and amortization (EBITDA) – This indicator “measures a company’s operational profitability, before accounting for interest, taxes, depreciation, and amortization costs.” Its purpose is to evaluate financial stability and operational effectiveness. To learn more about how to utilize this metric and its practical applications, get a free copy of the poster from TKI Marketplace.

This holiday season, unwrap a wealth of knowledge and expand your understanding of KPIs with a treasure trove of examples from various industries and functions. Explore the world’s largest database of KPIs and customizable dashboards—visit smartKPIs.com today and gift your business the insights it needs for success in the new year!

Utilities such as electricity, natural gas, and water and sewage services are the backbone of modern society, supporting everything from basic daily activities to critical infrastructure. Without these essential services, communities would struggle to function, and economies would come to a halt. 

In the latest release of the Top 25 KPIs report series, The KPI Institute dives into the critical key performance indicators (KPIs) essential for managing vital utility services. As the demand for efficient and sustainable service delivery continues to rise, understanding and leveraging the right KPIs is more important than ever. 

The Top 25 KPIs 2024 report series is an extensive collection of the 25 most commonly utilized KPIs from various industries and functional areas. The KPIs are curated based on viewership data from smartKPIs.com between January 2023 and April 2024, this series provides a snapshot of the latest trends in performance measurement.

Inside the report, readers can find a comprehensive analysis of the Performance Measurement Concept Framework, the most recent data on KPI challenges and usage contexts, and 10 strategies for successful KPI implementation. Moreover, each KPI featured has been thoroughly revised through extensive research to ensure that the information accurately captures the latest trends and changes in the evolving business environment. The 2024 edition also offers an enhanced documentation template that is optimized to present the most pertinent details about each KPI.

Whether readers are looking to enhance operational efficiency, reduce downtime, or deliver superior customer satisfaction, the Top 25 KPIs for utilities provide a comprehensive framework for driving performance improvements in this dynamic industry. In each report, let’s take a quick look at the top five KPIs for water and sewage, electricity, and natural gas.

Top 5 Water and Sewage KPIs 

1. # Wastewater collected and treated –  measures the total volume of wastewater collected and treated in the reporting period
2. # Water Quality Index – measures the quality of water based on five parameters – Temperature, Biological Oxygen Demand, Total Suspended Solids, Dissolved Oxygen, and Conductivity
3. # Days of treatment plant operation below standards – measures the number of days during which the water treatment plant operates below established performance standards
4. # Time to repair hydrants – measures the average time taken to repair a broken or inoperative hydrant
5.  % Non-revenue water (NRW) –  measures the percentage of water that enters the distribution system but is lost before reaching customers and not billed, out of the volume of water supplied

Learn more about the practical applications of the indicators above, as well as the other top 20 KPIs for the water and sewage sector, grab a copy of the Top 25 Water and Sewage KPIs – 2024 Edition report. It is available for digital purchase via the TKI Marketplace and as a physical copy on Amazon.

Top 5 Electricity KPIs

1.  # System Average Interruption Frequency Index (SAIFI) –  measures the average number of electricity system interruptions per customer during the reporting period
2.  # Customer Average Interruption Duration Index (CAIDI) – measures the average duration of electricity supply interruptions experienced by customers during the reporting period
3. # Power plant load factor –  measures the ratio of the average load to the peak load in the reporting period
4. # System Average Interruption Duration Index (SAIDI) – measures the average duration of electricity supply interruptions per customer, during the reporting period
5. $ Transmission line maintenance cost per network length –  measures the average expenditures incurred with the maintenance of transmission lines relative to the length of the network

Explore more insights about the top 5 Electricity KPIs and other 20 indicators by purchasing the digital copy of the Top 25 Electricity KPIs – 2024 Edition, visit TKI Marketplace. Furthermore, a physical copy can be ordered via Amazon.

Top 5 Natural Gas KPIs

1. # Unplanned pipeline unavailability –  measures the duration, in hours, that a pipeline is not operational for transporting gas due to unplanned circumstances
2. # Customers affected by repeated unplanned supply interruption – measures the number of customers impacted by multiple instances of unplanned supply interruption in the reporting
3. # Pipeline subjected to leak surveys (km) – measures the length, in kilometers, of the gas pipeline network that was subjected to leak detection surveys in the reporting period
4. # Gas supply planned interruptions duration – measures the average duration, in minutes, of planned gas supply interruptions experienced by customers in the reporting period
5.  # Gas pipeline temperature excursions – measures the number of gas pipeline temperature excursions recorded during  a specified reporting period

Gain a deeper understanding of the practical use of the top 5 KPIs above and discover the other 20 Natural Gas KPIs. Download a digital copy of the Top 25 Natural Gas KPIs – 2024 Edition via TKI Marketplace or purchase another copy via Amazon.

As the demand for reliable, sustainable services continues to grow, understanding how to optimize utility operations is more critical than ever. Let the Top 25 KPIs 2024 report series from The KPI Institute serve as your guide in selecting the most critical KPIs and tracking your organization’s progress towards its strategic goals.

The KPI Institute launched a series of free infographics called KPI of the Month to offer insights into the practical application of KPIs. Each infographic focuses on a particular key performance indicator (KPI) that provides explanations of terminology and addresses key challenges related to its use. The monthly infographics include definition, calculation, balanced scorecard focus, data profile, targets, and practical recommendations. 

To ensure that you stay informed and updated, we highlight in this article the KPI of the Month from the third quarter of 2024, focusing on three KPIs that can significantly impact any organization in any field or industry: # Inventory turnover ratio # Employment brand strength, and $ Customer acquisition costs.   

By examining these metrics, you can gain insights into operational efficiency, market positioning, and overall profitability. Furthermore, organizations can gain a holistic view of their performance and make informed decisions that can position them for sustainable growth and success when the indicators mentioned are fully grasped. So whether seeking to optimize inventory management, strengthen employer brand, or reduce customer acquisition expenses, you can dive into these indicators and discover how they contribute to a thriving business. 

KPI of July: # Inventory turnover ratio – This indicator “measures the number of times the inventory has been sold and replaced within the reporting period.” Based on its practice recommendation, # Inventory turnover ratio is influenced by various factors such as product characteristics, market demand, and business models. Access more insights into this indicator by getting a free copy of the poster via TKI Marketplace.

KPI of August: # Employment brand strength – This indicator evaluates the attractiveness of an organization as a workplace for employees and job seekers based on an index derived from survey responses and quantitative metrics. # Employment brand strength allows companies to tailor their calculation methods by selecting key themes and incorporating both survey data and KPIs. For more details about this indicator, download the free poster via TKI Marketplace.

KPI of September: $ Customer acquisition cost – This indicator determines the average cost associated with acquiring a new customer. It is crucial for companies aiming to achieve long-term profitability. In connection with $ Customer Lifetime Value, $ Customer acquisition cost assesses the cost efficiency of sales and marketing expenditures. By striving for an optimal ratio between these two indicators, businesses can refine their acquisition strategies, boost profitability, and minimize the payback period. To learn more about practical applications for this indicator, get a free copy of the poster from TKI Marketplace.

Enhance your KPI knowledge with a comprehensive collection of documented KPIs from various industries and functions. Explore the world’s largest database of KPI examples and customizable dashboards— visit smartKPIs.com today!

The role of human resources (HR) extends far beyond traditional functions like recruitment and employee relations. Today’s HR professionals can influence organizational success through their evolving role in strategy and performance management.

HR has shifted from merely handling administrative tasks to leading workplace culture and engagement. A Forbes article highlights that the future of HR is defined by two main focus areas: enhancing the employee experience and driving innovation. Moreover, HR leaders are now integral to strategic business decisions, especially in addressing workplace trends, including artificial intelligence (AI) integration and addressing diversity, equity, and inclusion (DEI), and sustainability. 

HR can rely on key performance indicators (KPIs)  to ensure the effectiveness of their initiatives and processes. According to The KPI Institute’s State of Strategy Management Practice Global Report – 2023, organizations primarily use KPIs in two main areas: assessing employee performance and evaluating overall corporate performance. 

Integrating KPIs into employee evaluations helps set clear expectations, track progress, and provide feedback. Furthermore, using KPIs for corporate performance helps monitor progress toward strategic goals and drive organizational success. To guide HR leaders in selecting the most effective KPIs, The KPI Institute (TKI) has released the Top 25 Human Resources KPIs – 2024 Edition. This report series is designed to share TKI’s expertise in utilizing KPIs for performance measurement. Inside the report is a practical, step-by-step guide for improving performance, which highlights how KPIs can bring greater clarity, focus, and enhancement to any performance measurement process.

The 2024 edition of the Top 25 KPIs reports features a two-page KPI Documentation Form Template. The first page includes updated fields based on the latest research and analysis from TKI, and the second page provides essential guidance on KPI reporting. The 2024 edition features practical examples of KPI results and illustrative designs for scorecards and dashboards for each KPI featured in the report.

The Top 25 Human Resources KPIs consist of 17 functional areas with 61 main functions, including accounting, information technology, and supply chain, procurement, and distribution. It also compiles from 25 industries with 100 divisions such as transportation, government – state / federal, and healthcare. 

The KPIs in this report are distributed in six categories: Retention, Talent Development, Recruitment, Workforce, Absenteeism, and Compensation and Benefits. In this year’s report, % Employee turnover is highlighted as the leading KPI, which falls under Retention. It “measures the rate at which employees leave the organization in a given time period (e.g., month, quarter, year).” 

To gain deeper insights into the significance and function of % Employee turnover and to uncover the other top KPIs shaping the HR industry, explore the Top 25 Human Resources KPIs – 2024 Edition. The full report is now available for purchase in print on Amazon and for digital download from the TKI Marketplace.

Key performance indicators (KPIs) serve as essential navigational tools, guiding organizations toward success in both strategic planning and operational execution. 

According to the State of Strategy Management Practice Global Report – 2023, “KPIs are extensively employed in two main areas: employee performance evaluations and corporate performance assessments.” Using KPIs in employee evaluations establishes clear expectations, tracks progress, and offers feedback. Similarly, KPIs employed in corporate performance assessments track progress toward strategic goals.

The KPI Institute launched a series of free infographics called KPI of the Month to offer insights into the practical application of KPIs. Each infographic focuses on a particular KPI that provides explanations of terminology and addresses key challenges related to its use. The monthly infographics include profile, calculation, balanced scorecard focus, data profile, targets, and practical recommendations.

To ensure that you stay informed and updated, we’ve compiled the KPI of the Month from the second quarter of 2024: $ Customer Lifetime value, # Cycle time in Agile, and % Projects with benefits realized. These KPIs not only highlight essential aspects of customer engagement, operational efficiency, and project management, but also play crucial roles in promoting sustainable growth and enhancing organizational agility. Let’s take a look at each KPI and its function:

KPI of April:  $ Customer Lifetime value – This indicator “measures the monetary value a company anticipates earning from a customer throughout their lifetime as a paying client.” Its purpose is to determine the value of customers based on their unique characteristics. Moreover, utilizing this indicator can assist organizations in refining marketing strategies, improving customer retention, and maximizing long-term profitability. To learn more about the $ Customer Lifetime value, download the poster on TKI Marketplace.

KPI of May:  # Cycle time in Agile – The purpose of this indicator is to assess the effectiveness of the development process of a team. It determines the average amount of time needed to accomplish a task from the time it starts the development process until it is finished and delivered. The # Cycle time in Agile helps find areas where processes can be streamlined by measuring output and delivery speed across several iterations. Download the free digital poster via TKI Marketplace.  

KPI of June: % Projects with benefits realized – This indicator measures the proportion of projects in the portfolio that have achieved or realized the expected benefits in relation to the total number of projects in the portfolio. Projects that use the benefits realization method seek to offer particular outputs in addition to strategic aims. To learn more about practical applications for this indicator, get a free copy of the poster from TKI Marketplace.

To widen your KPI expertise with an extensive collection of documented KPIs across diverse industries and functions, visit smartKPIs.com— a leading online platform dedicated to performance measurement and KPI management. It hosts the world’s largest database of documented KPI examples, offering resources such as KPIs by industry and department, and dashboards. Check it out now!

While key performance indicators (KPIs) have been around for a long time and are vital for tracking corporate, operational, and employee performance, some organizations still struggle to use them effectively up to these days. 

According to The KPI Institute’s State of Strategy Management Practice Global Report – 2023, 25% of the 346 respondents from private, government, and non-profit organizations expressed that aligning KPIs and targets across the organization continues to be their primary challenge. Moreover, 24% struggle with KPI selection, reflecting a 4% increase compared to results from 2022. When assessing their organizations’ proficiency in documenting KPIs, 47% of respondents rate their capabilities as high or better, but it is still important to note that 26% rate their documentation capabilities as low or lowest. Hence, 16% of them encounter difficulties in documenting KPIs.

To offer insights into the practical application of KPIs, The KPI Institute introduced a series of free infographics called KPI of the Month. Each infographic focuses on a particular KPI that provides explanations of terminology and addresses key challenges related to its use. The monthly infographics include profile, calculation, balanced scorecard focus, data profile, targets, and practical recommendations.

In case you missed the KPI of the Month from the first quarter of 2024, we’ve compiled the highlights to keep you informed and up-to-date:

KPI of January: $ Free cash flow (FCF) – This indicator “measures the amount of cash a company generates from its operations, after covering operating expenses and capital expenditures.” It aims to offer insights into a company’s financial well-being and ensure efficient cash management. One of its benefits is that it offers a focused evaluation of liquidity and solvency through exclusive attention to cash flow. To learn more about $ FCF, download the poster on the TKI Marketplace.

KPI of February: # Greenhouse gas emissions – This indicator’s purpose is to evaluate environmental pressures from greenhouse gas emissions. Specifically, it “measures the quantity of greenhouse gas emissions of country, industry,  or company expressed in metric tons of carbon dioxide equivalent (MtCO2e).” The greenhouse gas emissions have become a pressing issue that even the United Nations set ambitious net-zero goals, aiming for a 45% reduction in global greenhouse gas emissions by 2023 and achieving net-zero emissions worldwide by 2050. Learn how to utilize this indicator to align with your strategy for reducing emissions. Get the free infographic via TKI Marketplace.

KPI of March: % Critical positions filled – This indicator “measures the percentage of critical job positions that have been filled out of all available positions identified as critical within an organization.” The objective being measured by this indicator is the improvement of workforce planning for key positions. The % Critical positions filled helps organizations assess their capability to attract and retain suitable talent for critical job positions. But to utilize this KPI, identifying the critical positions within the organizations is important. To find out more about how you can apply this indicator in practice, grab a copy of the free poster from the TKI Marketplace. 

To amplify your KPI toolkit with a wealth of documented KPIs from various industries and functional areas, visit smartKPIs.com— the leading online platform for performance measurement knowledge integration and the world’s largest database featuring over 21,000 documented KPIs. 

Success in today’s ever-evolving world hinges upon the commitment to ongoing learning. The KPI Institute (TKI) is dedicated to ensuring that leaders, professionals, and the rest of the business community are equipped with the right knowledge and tools.

Every month, TKI curates a collection of diverse learning materials and opportunities in strategy and performance management. Some of these resources, while released years ago, remain highly relevant due to their timeless principles and adaptability to changing business dynamics, providing enduring value and insights for today’s challenges.

This month, TKI is pleased to present comprehensive, research-based resources focusing on human resources (HR).

Top 10 Human Resources Key Performance Indicators (FREE): Part of the Top 10 KPIs Series, this collection of posters provides an overview of how key performance indicators (KPIs) are measured in practice today, specifically in HR. It combines insights from the smartKPIs.com community with research and analysis from TKI’s Publications team.

Articles (FREE): Find practical insights related to HR and employee performance management from a variety of articles published on Performance Magazine, written by subject matter experts and research analysts.

• The human element: employees, fears and working with KPIs
• How to measure the performance of your human resources department
• Humane technology: the future of employee performance management
• Beyond remote work: insights and strategies for enhancing employee productivity and performance

The Human Resources KPI Dictionary: Get access to valuable information on over 370 KPIs with calculation formulas for every one of them. It is an innovative tool, essential for assessing and optimizing your performance in eight main functions of the Human Resources division within an organization, including compensation and benefits, talent development, and working environment.

The Top 25 Human Resources KPIs – 2020 Extended Edition: Browse the most popular 25 KPIs used by Human Resources divisions throughout 2016 and 2020. It provides a complete hands-on experience in working with KPIs as it contains not only two pages of detailed documentation for each KPI, but also interesting articles on best practices in terms of KPI selection and documentation.

HR Performance Management System Toolkit: Explore a ready-to-use collection of pre-populated templates for managing the performance of the HR department and monitoring its contribution to the overall organizational performance. Customers can customize the templates in the toolkit for internal use within their organization.

HR Scorecard: Monitor the alignment of departmental objectives with KPIs and the application of the Balanced Scorecard concept at the operational level with this ready-to-use tool. This is pre-populated with KPIs grouped by objectives and Balanced Scorecard perspectives and developed through the review of hundreds of best practice performance reports and the documentation of thousands of KPIs.

HR Dashboard: Manage and measure the contribution of the Human Resources function to the overall organizational performance by using this tool. Discover a repository of the most relevant and widely spread HR KPIs used to track the HR services’ effectiveness and performance at the organizational level.

Certified Employee Performance Professional – Online Course: Grab this opportunity to access the best practices in the field of employees’ performance. Gain the knowledge, skills, and confidence to create an environment where employees can thrive and successfully contribute to organizational performance by linking their activities to strategic objectives and reflecting their contribution against the company’s strategy.

Employee Performance Management System Implementation – Consulting: Find and build the essential bridge to link performance efforts across all organizational levels. By adopting a structured and robust employee performance framework, we emphasize on objectivity in measuring the results against expectations with the help of individual KPIs. This intervention relies on the analysis of key internal documents, delivery of awareness sessions with primary stakeholders, KPIs selection workshops, and post-implementation support.

Key performance indicators (KPIs) are used to understand and improve performance across a diverse range of industries, departments, and teams. For companies that produce goods and commodities, KPIs are absolutely essential as they offer a detailed view of their performance—for both individual employees and the organization as a whole. Production capacity and adherence to production schedules are just a few examples of areas in such an industry where KPIs can be used.

The importance of KPIs is even more prominent nowadays, as production has slowed considerably across the globe, caused by various compounding issues such as semiconductor, iron ore, and chemical shortages just to name a few. Such problems must be dealt with, and a reliable way to determine if the implemented solutions are working is through the use of KPIs. 

On top of the production slowdown, many companies that produce goods and commodities are also dealing with the changes brought about by Industry 4.0 —chief of which is the issue of proper integration. New technology and old processes typically don’t mix, a maladjustment that is exacerbated by skills gaps. Fortunately, there are ways to close these gaps, namely through reskilling and upskilling. Reskilling and upskilling are both training-centric methodologies, requiring employees to learn new skills or update their existing skill sets to match the new technology they will be using. This is not enough, however, as the effectiveness of training must be measured, which is where the use of KPIs comes into play. 

Due to the importance of KPIs in production, The KPI Institute (TKI) has diligently collated the 10 most widely used production KPIs. This information comes from smartkpis.com, TKI’s comprehensive database comprising 21,334 KPIs, covering 16 functional areas and 25 industries. The top 10 production KPIs are as follows:

1. % Production schedule attainment – Measures the rate at which the production target for a given time period has been attained.
2. # Units per man-hour – Measures the number of completed units of a product realized per man-hour of work.
3. % Production schedule adherence – Measures the deviation between the actual production units and the planned production units for the same period.
4. % Production uptime – Measures the percentage of utilized operation time from the planned available production time.
5. # Production plants – Measures the number of manufacturing plants (e.g. assemble lines) available and functional for the production process.
6. % Recovery yield rate of returned products – Measures the percentage of product returns that were valued again from overall returned products.
7. % Production capacity utilization – Measures the percentage of the production volume actually realized from the total production capacity.
8. # Ideal run rate – Measures the theoretical ideal production rate expected to be achieved in optimal circumstances.
9. # Production capacity – Measures the volume of products that one plant or company can produce with its actual resources in a specific timeframe.
10. $ Penalties cost due to unsatisfied demand – Measures the penalty values generated by the inability to satisfy demand.

Keeping track of these metrics can prove pivotal to the survival and success of any production business. For a detailed breakdown of these KPIs, including how to calculate them and when to measure them, download the free poster on the TKI marketplace.

Measuring financial performance in today’s dynamic and competitive business landscape goes far beyond traditional metrics. Aside from profitability and cash flow, the revenue growth rate is a vital indicator for companies striving for success. 

Monitoring revenue growth rates help the business make strategic decisions, attract investors, and maintain market competitiveness by comprehensively understanding their financial performance, whether it decreased or increased. It is also important to identify the factors influencing the revenue growth rate, such as choosing the right market, product and services pricing strategy, and customer retention rates.

Choosing the right market focus can help businesses narrow their target market and identify high-quality leads in their chosen segment, pursuing the most profitable customers. Moreover, narrowing market focus can effectively customize products or services to match the market segment’s unique demands and preferences. 

However, even the most profitable segments can lead to lower revenue rates because of the product and service prices as more business competitors enter the market. Hence, the right products and services pricing strategy is essential. According to research, “accurate and effective pricing” is vital for a company to become profitable. All products and services should have pricing plans based mainly on the knowledge of the demands and values of the target market. Based on the same study, value-based pricing is the best method to assess an item’s right price based on the value it generates for clients and their perceived worth. 

With reasonable products and service prices and the best quality value, satisfied customers are more likely to become repeat customers, refer the business to others, and drive long-term revenue growth. A study conducted on businesses in Kurdistan suggests that pricing strategies have a strong and significant impact on customer retention. Based on the study’s results, customers prioritize product pricing over product quality. It was also discovered that implementing an aggressive pricing strategy is more effective in customer retention.

A thorough comprehension of these elements equips organizations to adjust to shifting market conditions, streamline processes, and promote long-term revenue development. But what are the ways in which businesses can monitor their revenue growth rate? There are a few of them such as analyzing revenue trends by regularly reviewing financial statements like income statements, balance sheets and cash flow statements, tracking sales quantity and value over time by monitoring sales reports, and using key performance indicators (KPIs) related to revenue.

The KPI Institute’s infographic titled “KPI of the month: % Revenue growth rate” is an easy guide for businesses to determine whether their revenue has grown or dropped over time and measure the level of its change. Specifically, the % Revenue growth rate calculates the revenue variance percentage over a designated time frame. This can be calculated on a quarterly or annual basis. 

To get a picture of the overall revenue performance, it is essential to monitor the % Revenue growth rate alongside other KPIs, such as $ Net income and $ Financial expenses. Moreover, organizations should take competitive aims and industry standards into account when defining targets as part of the annual budgeting process to make sure their goals are realistic and achievable.

Download the free infographic on the slot thailand TKI Marketplace today and unlock the power of KPI in monitoring your business revenue growth rate.

With the world facing many environmental challenges, including climate change, pollution, and resource depletion, companies acknowledge the need to prioritize sustainability in their operations. 

According to a survey conducted by the United Nations Global Compact and Accenture, almost 98% of CEOs recognize the importance of sustainability and see it as a core part of their role. Moreover, a report by the Global Reporting Initiative found that 73% of the world’s largest companies are now reporting on their sustainability performance. Additionally, over 25% of businesses reported cost savings as a result of their sustainability investments.

Not only is it a moral imperative but it is also increasingly becoming a business essential as consumers, investors, and governments demand more sustainable practices from businesses. The Global Sustainable Investment Alliance reports that sustainable investments reached $35.3 trillion globally in 2020, up 15% from 2018. Furthermore, a survey revealed that over one-third (34%) of the population is willing to pay a 25% premium on average for sustainable products or services.

But there is still much progress to be made. Monitoring performance using key performance indicators (KPIs) can provide insights into environmental performance and aid in monitoring waste reduction and management.

One example is The KPI Institute’s KPI of the Month: % Waste reused, recycled, and recovered. This KPI helps businesses identify the proportion of reused, recycled, or recovered from the total waste generated during the reporting period. Its purpose is “to provide an indication of the performance management efficacy and commitment to corporate social responsibility and sustainability actions.”

This KPI of the Month endorses the Zero Waste Hierarchy framework, which aims to promote sustainable choices, minimize waste, and conserve resources. The framework is divided into seven parts: redesign, reduce, reuse, recycle, recover, residuals and unacceptable. 

To know more about how to use the % Waste reused, recycled, and recovered indicator, download the free poster through The KPI Insitute Marketplace. 

The KPI of the Month Infographic features a KPI by providing its definition and presenting the challenges of using the KPI in terms of calculation, Balance Scorecard focus, data profile, targets, and recommendations for implementation. It is a valuable resource for practitioners, academics, and consultants working in performance management.